Business news from Ukraine

Ukraine’s rolled steel market grew by 1.7%, with imports accounting for 35%

In January-July this year, Ukrainian enterprises increased their consumption of rolled metal products by 1.67% year-on-year to 2 million 34.6 thousand tons.

According to a press release issued by Ukrmetallurgprom on Monday, 711.6 thousand tons, or 34.97% of the domestic rolled metal consumption market, were imported during this period.

According to Ukrmetallurgprom, in January-July 2024, steel companies produced 3.728 million tons of rolled metal products (128.4% compared to the same period in 2023), of which, according to the State Customs Service of Ukraine, about 2.405 million tons, or 64.5%, were exported. In January-July 2023, the share of exports amounted to 51.3% (1.490 million tons against a total production of 2.903 million tons of rolled steel).

The share of semi-finished products in export deliveries in January-July 2024 amounted to 46.90%, which is the same as in January-July 2023 (46.11%). The share of flat products in export deliveries in seven months of 2014 is significantly higher than in January-July 2023 (39.83% and 34.77%, respectively). The share of long products is significantly lower than in January-July 2023 (13.26% in 2024 vs. 19.13% in 2023).

“In 7 months of 2024, the domestic market capacity amounted to 2034.6 thousand tons of rolled steel, of which 711.6 thousand tons or 34.97% were imported. In January-July 2023, the domestic market capacity was 2001.2 thousand tons, of which 588.2 thousand tons or 29.39% were imported. Thus, for 7 months of 2024, there is an increase in the domestic market capacity by 1.67% compared to 7 months of 2023, with a simultaneous increase in the share of the import component by 5.58%,” the press release states.

The structure of imports in January-July 2024 is still characterized by a significant dominance of flat products over long products (79.38% and 19.04%, respectively); in January-July 2023, the dominance of flat products over long products was also significant (78.83% and 20.13%, respectively).

According to the State Customs Service, the main export markets for Ukrainian rolled steel products in January-July 2024 were the European Union (74.3%), Africa (8.8%) and the rest of Europe (7.6%). Among metallurgical importers in the first seven months of 2024, the first place was taken by other European countries (47.1%), the second by the EU-27 (29.8%), and the third by Asian countries (21.2%).

As reported, Ukraine’s rolled metal market grew 2.19 times in 2023 compared to 2022, to 3 million 505.6 thousand tons.

The company imported 1 million 118.6 thousand tons, or 31.91% of the domestic rolled metal consumption market.

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“DMZ” cuts rolled steel production by 51.8%, coke output down by 1.6%

Dnipro Metallurgical Plant (DMZ), a part of DCH Steel of businessman Aleksandr Yaroslavsky’s DCH Group, cut rolled steel production by 51.8% year-on-year to 33.8 thousand tons in January-July this year.
According to information in the corporate newspaper DCH Steel on Thursday, in July, the company did not produce rolled metal, but rolling shops shipped to customers more than 1.5 thousand tons of rolled products produced in previous periods. In July 2023, the company produced 13.3 thousand tons of rolled metal products.
At the same time, coke production in the first seven months of 2024 decreased by 1.6% to 169.6 thousand tons. In July 2024, coke production increased by 7.2% month-on-month to 26.1 thousand tons. In July 2023, the company produced 30.4 thousand tons of coke.
“Rolling shop No. 1 is currently being prepared for launch, where R-34 and R-43 rails will be produced during the production campaign,” the company said in a statement.
As reported, in 2023, DMZ increased its rolled metal output by 86.2% compared to 2022, up to 105.6 thousand tons, and coke output by 38.5%, up to 292.7 thousand tons.
In 2022, the plant reduced rolled steel production by 74.2% compared to 2021, to 58.4 thousand tons, and coke production by 56.3%, to 211.3 thousand tons.
DMZ specializes in the production of steel, pig iron, rolled products and products made from them.
On March 1, 2018, DCH Group signed an agreement to buy Dnipro Metallurgical Plant from Evraz.

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Ukraine increases rolled steel output by 28% and steel production by one third

In January-July this year, Ukrainian steelmakers increased production of total rolled products by 28.4% year-on-year to 3.728 million tons from 2.903 million tons, according to preliminary data.
According to Ukrmetallurgprom, steel production increased by 33.6% to 4.583 million tons and pig iron by 21.2% to 4.089 million tons in the period. In July, the company produced 588.6 thousand tons of rolled products, 708.9 thousand tons of steel, and 621.4 thousand tons of pig iron, compared to 571.5 thousand tons of rolled products, 734.7 thousand tons of steel, and 628.6 thousand tons of pig iron in the previous month.
As reported, in 2023, Ukraine increased production of total rolled products by 0.4% compared to 2022 to 5.372 million tons, but reduced steel production by 0.6% to 6.228 million tons and pig iron by 6.1% to 6.003 million tons.
In 2022, Ukraine reduced production of total rolled products by 72% compared to 2021 to 5.350 million tons, steel by 70.7% to 6.263 million tons, and pig iron by 69.8% to 6.391 million tons.
In 2021, the company produced 21.165 million tons of pig iron (103.6% compared to 2020), 21.366 million tons of steel (103.6%), and 19.079 million tons of rolled products (103.5%).

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“Zaporizhstal” increased rolled steel output by 38%

In January-July this year, Zaporizhstal Iron and Steel Works increased its rolled steel output by 38% year-on-year to 1.435 million tons from 1 million 40.2 thousand tons.
According to the company’s information on Friday, steel production during this period increased by 37.9% to 1 million 737.1 thousand tons, and pig iron production by 27.1% to 1 million 789.5 thousand tons.
In July, Zaporizhstal produced 261.9 thousand tons of iron, 250.8 thousand tons of steel, and shipped 202 thousand tons of rolled products.
It is also recalled that in 2023, the plant operated at an average of 70% of its capacity.
As reported, in 2023, Zaporizhstal increased its rolled steel output by 57.2% compared to 2022, to 2 million 54.7 thousand tons, steel by 65.4%, to 2 million 466.9 thousand tons, and pig iron by 35.3%, to 2 million 718.9 thousand tons.
“Zaporizhstal is one of the largest industrial enterprises in Ukraine, whose products are in great demand among consumers both in the domestic market and in many countries of the world.
“Zaporizhstal is in the process of integration into Metinvest Group, whose major shareholders are System Capital Management (71.24%) and Smart Holding Group (23.76%).
Metinvest Holding LLC is the management company of Metinvest Group.

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Ukraine’s rolled steel market grew by 7.7%

In January-June of this year, Ukrainian enterprises increased their consumption of rolled metal products by 7.73% year-on-year to 1 million 736.4 thousand tons.
According to a press release issued by Ukrmetallurgprom on Monday, 592.4 thousand tons, or 34.12% of the domestic rolled metal consumption market, were imported during this period.
According to Ukrmetallurgprom, in January-June 2024, steel companies produced 3.140 million tons of rolled metal products (132.3% compared to the same period in 2023), of which, according to the State Customs Service of Ukraine, about 1.996 million tons, or 63.6%, were exported. In January-June 2023, the share of exports amounted to 52.9% (1.257 million tons with a total production of 2.374 million tons of rolled steel).
The share of semi-finished products in export deliveries in the first half of 2024 was 45.39%, which is the same as in January-June 2023 (45.90%). The share of flat products in export deliveries in January-June 2024 is significantly higher than in the same period of 2023 (41.73% and 33.65%, respectively). The share of long products is significantly lower than in January-June 2023 (12.88% in 2024 vs. 20.45% in 2023).
“In the first six months of 2024, the domestic market capacity amounted to 1 million 736.4 thousand tons of rolled steel, of which 592.4 thousand tons, or 34.12%, were imported. In January-June 2023, the domestic market capacity amounted to 1 million 611.8 thousand tons, of which 494.8 thousand tons, or 30.17%, were imported. Thus, in the first six months of 2024, there was an increase in the domestic market capacity compared to the first six months of 2023 – by 7.73%, with a simultaneous increase in the share of the import component by 3.42%,” the press release states.
The structure of imports for the first six months of 2024 is still characterized by a significant dominance of flat products over long products (80.06% and 18.30%, respectively); in January-June 2023, the dominance of flat products over long products was also significant (78.88% and 20.09%, respectively).
According to the State Customs Service, the main export markets for Ukrainian rolled steel products in January-June 2024 were the European Union (77.1%), the rest of Europe (6.9%) and Africa (6.4%).
Among metallurgical importers in January-June 2024, the first place was taken by other European countries (46.5%), the second by the EU-27 (31%), and the third by Asian countries (20.5%).
As reported, Ukraine’s rolled steel market grew 2.19 times in 2023 compared to 2022, to 3 million 505.6 thousand tons. The company imported 1 million 118.6 thousand tons, or 31.91% of the domestic rolled metal consumption market.

Yaroslavsky’s DMZ cuts rolled steel production by 40.5%

Dnipro Metallurgical Plant (DMZ), a part of DCH Steel of businessman Aleksandr Yaroslavsky’s DCH Group, cut rolled steel production by 40.5% year-on-year to 33.8 thousand tons in January-June this year.
According to a report in DCH Steel’s corporate newspaper on Thursday, coke production during this period increased by 1.1% to 143.5 thousand tons.
At the same time, in June 2014, DMZ reduced its rolled steel output by 83.2% compared to June 2013 and by 69.2% to 2.4 thousand tons compared to the previous month. Metallurgical coke production in June decreased by 26.9% compared to June 2023 and by 3.6% compared to the previous month to 24.4 thousand tons.
In addition, during the regular rolling campaign, which lasted 13 days in May and June, Rolling Shop No. 2 produced about 10 thousand tons of products, most of which have been sold to date. However, due to a lack of orders, the next rolling campaign was postponed. In turn, rolling shop No. 1 is scheduled to start rolling in the third decade of July.
As reported, in 2023, DMZ increased its rolled metal output by 86.2% compared to 2022, up to 105.6 thousand tons, and coke by 38.5%, up to 292.7 thousand tons.
In 2022, the plant reduced its rolled steel production by 74.2% compared to 2021, to 58.4 thousand tons, and coke production by 56.3%, to 211.3 thousand tons.
DMZ specializes in the production of steel, pig iron, rolled products and products made from them.
On March 1, 2018, DCH Group signed an agreement to buy Dnipro Metallurgical Plant from Evraz.

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